Los Angeles Business Journal

Consumers to See Smaller Paychecks Despite Budget Deal

Thursday, January 3, 2013

Congress in its last-minute federal budget fix did not extend a payroll tax cut in place since 2008, so workers will see the tax on their paychecks rise to 6.2 percent from 4.2 percent last year, reports the Los Angeles Times and Los Angeles Daily News. This could strip $115 billion in disposable income from the economy this year. The Times also details other tax increases.